What will the government pull out of its election-budget hat?

By The Editorial Board 26 May 2025, 6:00PM

Fix the hospital, hire more nurses, doctors and teachers, invest in the energy grid, make better infrastructure and provide more benefits to the poor and disabled. That should be the focus of the national budget.

The nation is again at this juncture, where the financial plan for the next 12 months will be laid out. This is the budget that is being rolled out before the next general election, and it will definitely please a few people. It may carry further news of a pay rise for civil servants and/or nurses. They need it. There could also be an increase in the social benefit payment to the elderly and the disabled. That is hopeful.

Hopefully, this time around, the budget will look at ways to improve the lives of people by decreasing import taxes on food items and lowering food costs and bringing down the cost of living. The cost of living is not making life any easier for most people. Minimum wage earners are struggling to make ends meet. People are expecting the government to provide relief by easing taxation, especially on food, to make things affordable.

The national hospital is crying out for help. It remains understaffed and under-resourced. The building is falling apart,t and there is a need for a new one because the band-aid solutions will only work to a certain extent. The nation knows the state of the hospital and the public health system. There should be more consideration towards the health budget. Let us hope that the Ministry of Health budget team have made the right submissions.

The agriculture sector’s contribution to the Gross Domestic Product decreased by almost 11 per cent, while fisheries by more than 50 per cent. These are indicators that the Ministry of Agriculture and Fisheries needs a shakedown, and all the policies and money spent on projects to increase productivity have not worked. The budget should focus away from the ministry and more on growers. There should be direct financial incentives for growers and fishers to increase productivity and have a bigger yield. The low output from the sector increases reliance on imports.

There has to be an attempt made by the government to allow everyone access to education by either making education free or ensuring there are enough teachers in schools. Education is the way forward and the only way towards progress. We need more commitment from the government in education. There should be money for getting children off the streets and the police need to beef up their fight against meth.

One thing that is expected to be announced in the national budget would be the district development grants. Districts are on their way to just their third million, two million tala per district remains to be collected. The budget may come up with the surprise announcement that the remainder would be given in a lump sum. This is worrying. Transparency and accountability associated with the grants remain questionable, and no improvements have been made to allow the public to view how this money has been spent.

The government also needs to make the budget address better and specify how and where the money will be used. This has been a trademark of all budgets that have been presented from day one. There is no mention of taxes going up or down or how the budget will affect the pockets of everyday people. The information presented in parliament does not tell this. People want to know if they will pay more or less for food, medicine, alcohol, cigarettes, white goods, computers, electronics, clothes, and other items.

The budget address, along with estimates and the fiscal policy changes and taxation changes, have to be made public at the earliest. That is the type of information that should be made available. People have the right to know what the budget discussion will focus on and not be told when the budget is passed. People need to know if the income tax threshold is being increased or decreased.

The weeks to come will tell the story of what is going where, and who will be the winners from this budget. The government is being urged to make the budget estimates, taxation, and fiscal policies public, so the people have a clearer idea of what is being discussed and how they are being impacted.

We will just have to wait and see what the finance minister will pull out of the hat this time.

By The Editorial Board 26 May 2025, 6:00PM
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